The following is a summary of the Benchmark Electronics, Inc. (BHE) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Benchmark Electronics reported a Q1 2024 total revenue of $676 million, representing a decrease of 3% year-over-year and 2% sequentially.

• The non-GAAP gross margin exceeded 10%, marking ongoing gross margin expansion.

• Non-GAAP operating margin for Q1 was 4.9%, 50 basis points higher year-over-year.

• The non-GAAP earnings per share were $0.55 (or $0.51 when considering stock-based compensation expense), which is higher than their initial projection of $0.42 to $0.48.

• The company posted a positive free cash flow of $43 million, extending their positive free cash flow streak to four quarters.

• Benchmark Electronics now aims for a free cash flow between $80 million and $90 million, higher than their initial target of $70 million to $80 million.

Business Progress:

• Several business wins have been reported across various sectors, including biotech and industrial sector automation applications.

• Increased demand in the aerospace and defense sectors is projected, while the medical sector growth will likely remain weak in upcoming quarters.

• The company faces major pressure in the communications sector, with no improvement expected in 2024.

• CapEx for the year is estimated to be between $55 million and $65 million.

• The company's investment to expand manufacturing capacity in Malaysia, Penang, and Mesa, Arizona is likely to pay off due to a positive market outlook.

• Benchmark Electronics plans to resume share repurchases in 2024. With eyes on increasing demands in the communications and medical sectors, the company sees 2025 as a year of growth.

More details: Benchmark Electronics IR

Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.